On this episode of Porch Beers, Dr. Trogdon walks us through the agent vs. principle business models through the lens of the Wu Tang Clan and U2.  Despite both groups having immense musical and financial success, they follow two different business models, where one pays their manager a fee and the other offers equity in the whole business.  The topic unpacks the true question at the heart of the issue of would you give up equity in your financial future in exchange for a (hopefully) highly engaged business partner... or do you go on your own?  Along the way Trog brings up the Coase Theorem and the concept of property rights, the future value of equity versus the present value of a commission, and the complexity of human beings and risk.

Porch Beers is a series of casual episodes, where Brett asks Trog a question or two cold, that he hasn't heard prior to the conversation.  Like most conversations they have over a beverage, Trog doesn't know what will be asked of him at the time.  His vast expertise of finance and economic theory is put to the test when he's asked for advice or clarity on the topics discussed.  In today's episode we stick to one topic, and walk through understanding the some of the why or why nots of giving up equity in your business, and ultimately if it's possible to predict the future.

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